1. Extending Social Protection to the informal economy

2. Agenda What is social protection? The social protection floor, an opportunity for the informal economy What is important to know about social protection…

3. Part 1 The right to social security

4. Social security as a human right Article 22 Universal declaration of Human Rights: Social security is for all, not only a luxurious product for developed countries or those in formal employment

5. 5 C.102 Social Security (Minimum Standards) Convention, 1952 C 121 Employment Injury Benefits Convention, 1964 C 130 Medical Care and Sickness Benefits Convention, 1969 C 128 Invalidity, Old-Age and Survivors' Benefits Convention, 1967 C 183 Maternity Protection Convention, 2000 C 118 Equality of Treatment (Social Security) Convention, 1962 C 157 Maintenance of Social Security Rights Convention, 1982 R67 Income Security Recommendation, 1944 R69 Medical Care Recommendation, 1944 C 168 Employment Promotion and Protection against Unemployment Convention, 1988 ILO’s standards for implementing the right to SS R.202 Recommendation on Social Protection Floors, 2012 C 19 Equality of Treatment (Working Injury) Convention, 1925

6. Death of the breadwinner What is social security? People face contingencies during their life cycle, which have financial consequences Social security protects against the economic and social distress caused by such contingencies Especially for informal economy workers (more vulnerable) Life cycle Old age Work injuryMaternityUnemployment Invalidity Families with children Sickness / ill health Medical care

7. What is social security? To compensate for the loss of income & covers health care expenditures To facilitate access to social services and fulfill basic needs FINANCIAL SUPPORTACCESS TO SERVICES THE PROTECTION PROVIDED BY SOCIETY to ALL MEMBERS OF THE SOCIETY SOCIAL TRANSFERS

8. Typology of social transfers Social transfers ContributoryNon contributory CompulsoryVoluntaryTargetedNon-Targeted Social Insurance Extension of social insurance to informal sector Micro-Insurance Targeted social assistance Universal schemes http://www.social-protection.org/gimi/gess/ShowTheme.do?tid=11&ctx=0

9. Part 2 The social protection floor, an opportunity to extend social protection to informal economy

10. Extending social security to all Population Level of protection Poor Rest of informal sectorFormal sector For a long time, SS was contributory and mainly adapted to the formal sector This did not happen…. This did not happen…. Assumption that these schemes would progressively extend their coverage with the shrinking of the informal sector???

11. Current situation in most developing countries, including Asia New initiatives emerged: voluntary extension, social welfare for targeted groups Schemes often scattered, uncoordinated and insufficiently funded Population Level of protection Social insurance Poor Rest of informal sectorFormal sector

12. As a result, the major part of the population, those in informal economy, is however yet left without adequate protection Population Level of protection Poor Rest of informal sectorFormal sector Current situation in most developing countries, including Asia

13. Achieving the right to social security All residents should enjoy at least a minimum level of social security Countries should establish SPFs as a fundamental element of their social security systems Population Level of protection Poor Rest of informal sectorFormal sector Social Protection Floor

14. The social protection floor Based on this floor, extend social security to provide progressively higher levels of SP benefits to more people Population Level of protection Social insurance Poor Rest of informal sectorFormal sector Social Protection Floor

15. The SPF endorsed globally http://www.ilo.org/wcmsp5/groups/public/---ed_norm/--- relconf/documents/meetingdocument/wcms_183326.pdf R202 was endorsed by the 185 member states of ILO in June 2012 with 456 ‘yes’ votes and 1 ‘not present’ R202 serves as a guidance to member states to establish or maintain nationally defined SPFs

16. The SPF: an amazing opportunity A set of guarantees  All residents have access to essential health care All children enjoy income security through transfers in cash or kind  access to nutrition, education and care   All those in active age groups who cannot earn sufficient income enjoy a basic income security (particularly in case of sickness, unemployment, maternity, disability)  All residents in old age have income security through pensions or transfers in kind

17. s What is SPF? Social Protection Floors Nationally defined SPFs No ‘one size fits all’ approach : each country defines the levels of benefits that it can/is willing to provide Each country also decides how to do it – through universal schemes, targeted social assistance, social insurance, a combination…

18. What is SPF? An investment in human capital The SPF provides social protection to those in non- formal employment relationships The SPF promotes employability (employment support and vocational training) People become active contributors to the economy

19. Part 3 Social Protection, what is important to know… Fundamental principles

20. Social Protection can only be successful if … … it builds on: Social solidarity Equity and universality State’s responsibility Social dialogue Strategies for enhancing human resource and decent work opportunities

21. Social solidarity Principles of social insurance and collective financing Solidarity among generations, sex, sectors of the economy, type of contracts, … Equity and universality Equal access to social protection benefits and services: rural/urban, nationals/non-nationals Progressive extension towards universal coverage (could be with different financing methods)

22. State’s responsibility Effective coordination and policy consistency Adequacy of benefits Good governance Quality and delivery of services Ultimate guarantor of the funds Effective social dialogue At all stage: design, implementation, monitoring and evaluation Tripartite board of social security funds Extending coverage among informal and rural workers

23. Opportunities Enhancing capabilities (children’ development, education, vocational training) Creating opportunities for productive, sustainable and decent employment Employment covered by social security Promoting rural development and food security Recognizing the contribution of older persons to the society and community

24. Part 4 Challenges to extend social protection to informal economy and elements of response

25. Persistent informal economy and vulnerable employment Social insurance (contributory schemes), limited coverage (old-age pensioners covered: from 0 to 28% contributors) Social protection for vulnerable groups still insufficient (informal, rural and own-account workers) (almost 60% of working population in SE Asia)

26. Characteristics of the informal economy Irregular incomes Hazardous work and hard working conditions Vulnerability to economic and natural disaster shocks Low access to training and programmes for enhancing capacities Women tend to be more represented in IE No or very limited access to social protection (voluntary extension of social insurance unsatisfactory) Low access to credit

27. Innovative measures for informal economy Innovative measures with close link between social protection and employment promotion Investment in education, nutrition and health= investment in the future Adapted social security programmes (mandatory/voluntary, contributory/subsidized/tax funded) Apprenticeships and vocational training programmes Public employment programme